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Title: Sustainability issues of Bitcoin layer-2 rollups Introduction: A recent report from Galaxy Research has raised alarms about the long-term viability of Bitcoin layer-2 scaling solutions, particularly “rollups”. Despite their current acclaim as a method to maintain Bitcoin transactions that are affordable, speedy, and decentralized, the report underscores significant sustainability challenges. Released on August 2, the analysis by Gabe Parker of Galaxy Research identifies the high cost of data posting to the Bitcoin base layer as a central issue for rollups. For these layer-2 networks to remain viable, they must generate significant revenue from transaction fees, relying on a large user base willing to pay for their transactions.
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3. Expert Opinions and Broader Context Alexei Zamayatin, co-founder of “Build on Bitcoin” (BOB), a hybrid rollup that connects Ethereum and Bitcoin, argues that Bitcoin rollups can be as cost-effective as their Ethereum counterparts. However, he cautions against using Bitcoin’s main chain for data availability, suggesting alternatives like Celestia or a merge-mined Bitcoin sidechain to reduce costs. This approach, while cheaper, sacrifices some of Bitcoin’s complete decentralization and security. Responding to the Galaxy report on X, Zamayatin stated, “No one will use Bitcoin L2s if they are 100x more expensive than Ethereum L2s, just because ‘it is on Bitcoin.’ Good news: They won’t be more expensive.”
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